Economy & Budget

Senate Republican Conference President Lamar Alexander (Tenn.) has issued a statement praising the "breakthrough" plan reached late Saturday night between House and Senate negotiators to rescue Wall Street.

Alexander's statement:

"Congress has significantly amended the Paulson plan to protect the taxpayer and get our economy moving again. If the House passes the legislation Monday, then the Senate should also act Monday so that Americans will be able to cash their paychecks, get mortgage and car loans, obtain student loans, and keep their jobs. The bill gives the Treasury secretary the authority he needs with strict oversight. And it minimizes the risk of loss to taxpayers and ensures that annual profits from the transactions go to reduce the federal debt."

New Hampshire Republican Sen. Judd Gregg, a key participant in Saturday's late-night bailout negotiations, said Sunday afternoon that both presidential candidates played a part in the deal that was reached and that final congressional votes are likely Monday.

Gregg, the ranking Republican on the Senate Budget Committee, also said negotiators Saturday night were told in no uncertain terms from leading economists that a meltdown on Wall Street was imminent if the Bush administration's $700 billion plan was not approved as soon as possible.

"Getting this done soon, promptly, is absolutely critical to the confidence of the markets," Gregg said. "I can't understate that issue."

Both Democratic presidential nominee Barack Obama and GOP nominee John McCain were in close contact with the lead negotiators throughout the nine-hour session Saturday afternoon and evening, Gregg said, and he confirmed media reports that economists' perspectives were sought as well.

On other key points, Gregg said:

Republican presidential nominee John McCain says the Wall Street bailout negotiations are so important he came straight back to Washington after last night's presidential debate with Democratic nominee Barack Obama in Mississippi. Lawmakers are working feverishly over the weekend to try to wrap up the crucial $700 billion bill to prevent a complete meltdown of the U.S. financial system.

It's pretty weighty stuff, everyone in Washington agrees.

But for Sen. Arlen Specter (R-Pa.), some things are even more important, like the Philadelphia Phillies trying to clinch the National League East division title Saturday afternoon. Unlike most of the rest of the Philly fans, though, he doesn't appear to be waving a rally towel, though.

On the Fox broadcast of the game, Specter is clearly visible in the second row behind home plate at Citizens Bank Park in South Philly. He's wearing a suit and tie, though, so he's ready to go if he needs to rush back to the Capitol to stand behind the congressional leadership at a press conference if he wants.

-Jeffrey Young

New York Mayor Michael Bloomberg (I) painted a dire picture of a world in which Congress doesn't pass a bailout plan to buy up distressed mortgage assets.

On his radio show Friday, Bloomberg said it was "inconceivable" that Congress wouldn't approve a rescue package, the Associated Press reports. But if it failed to do, he saw a scenario in which "the world is shutting down."

"You would literally have the banks closing their

Sen. Richard Shelby (R-Ala.) said Friday that the bailout plan put forth by the Bush administration won't work and that Congress is rushing to judgment.

"I think that what you have here is a profound proposal by the Secretary of the Treasury that a lot of people, Democrats and Republicans, have trouble with," he said on CNBC. "One, they're rushing the judgment. It's not linear. They're trying to push this in an emotional state saying the sky is falling if we don't do so and so."

Shelby, the ranking Republican on the Senate Banking Committee, later added: "What they're trying to do is bail out banks, not settle -- put liquidity into the market. And if you start with a structure that's wrong, no matter what you add to it, it won't work."

See the video here: http://www.cnbc.com/id/15840232?video=868529751.

Senate Majority Leader Harry Reid (D-Nev.) slammed President Bush for "fiscal dereliction of duty" Wednesday, accusing Bush of being "absent" from the fiscal crisis and noting that the president has given only two short statements on the country's most serious economic convulsion in nearly 80 years.

"Congress and especially the American people have a right to know

A quarter-century old ban on offshore drilling in the United States will be left to expire, as Democrats appear ready to let the Congress go to recess absent a vote.

A provision continuing the ban will be left out of an omnibus spending bill Rep. David Obey (D-Wis.)

John McCain's call for the resignation of Securities and Exchange Commission Chairman Chris Cox is "dishonest," Rep. Dana Rohrabacher (R-Calif.) said Monday.

Federal Reserve Chairman Ben Bernanke will face questions about weakened economy from the Joint Economic Committee on Wednesday.

The committee, which includes members from both the House and the Senate, is just one of three that have asked Bernanke to testify this week about the Wall Street crisis and the economy.

Bernanke and Treasury Secretary Henry Paulson are scheduled to appear before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday and Thursday.

Wednesday's Joint Economic Committee hearing is scheduled for 10 a.m. in the Dirksen Senate Office Building.

The Senate Banking Committee scrapped a highly anticipated hearing scheduled for Thursday with Treasury Secretary Henry Paulson.

That marks the second time in a week Paulson's appearance has been cancelled.

The committee declined to say why Thursday's hearing was put off. Paulson irked Chairman Christopher Dodd (D-Conn.) by cancelling a Tuesday appearance. Lawmakers are eager to press the secretary about the government's unprecedented efforts to stabilize Wall Street.

- Manu Raju